Structural change and economic growth in India

Abstract

Using detailed sectoral data from India KLEMS, we analyze the role of structural change in determining India's aggregate productivity growth during 1980-2011. In general, the impact of static structural change on aggregate labor productivity growth has been positive, as workers moved to sectors of a relatively higher labor productivity level. However, dynamic reallocation effects-worker movement to fast-growing industries-have not been observed. The pro-market reforms in the 1990s did help a TFP growth-enhancing allocation of capital across sectors. The relative importance of the manufacturing sector for aggregate TFP growth has increased in recent years. Yet, India's structural transformation features the absorption of workers in the construction sector and slow and stagnant job creation respectively in services and manufacturing sectors. This poses a challenge, as the potential for productivity growth in construction and services are limited, and the changing nature of manufacturing production provides less room for absorbing less-skilled workers.

The Impact of Structural Change on the Economic Development of CEMAC Member States: A Comparative Analysis of Congo and Cameroon

“…We note that this increase is greater in Congo than in Cameroon. This result is consistent with the findings of Erumbana et al (2019), Beqiraja et al (2019), Vu (2017, and Ghani and O'connel (2016), which all showed that the service sector positively influences economic development.…”

“…Empirically, this topic highlights two lines of research: on the one hand, an axis that shows that structural change leads to economic growth and therefore to development (Erumbana et al, 2019;Vu, 2017;Ghani and O'connel, 2016;De Vries et al, 2012;De Vries et al, 2015), and on the other hand, an axis that shows that structural change does not contribute to economic growth or therefore to development (Padilla-Pérez and Villarreal, 2017;Meckl, 2002;Ngai and Pissarides, 2007;Fagerberg, 2000;Timmer and Szirmai, 2000).…”

Role of Structural Change in Economic Growth: An Empirical Evidence from a Panel of Asian Countries

“…In the debate on agenda items of economic growth and productivity, the centre-stage has always been occupied by the concept of structural change (Erumban et al, 2019). Clark (1951) recognized the idea that as economies develop, the share of agriculture, both in output and employment, would decline and that of industry would rise first and then fall in favour of services, was put forward long ago by Sir William Petty in 17 th century.…”

“…The word 'structural change' or 'structural transformation 1 is frequently used in economics, particularly in development literature. Being a particular facet of development, structural change retained its importance in development economics for quite a long time (Erumban et al, 2019). Page (2017) note that it was the main theme of the growth theories in the era of 1950/60's.…”

Analysis Of Changes In The Russian Economy

“…The applied structural and evolutionary approaches to the analysis of economic changes do not go beyond the issues traditionally considered in the modeling of equilibrium growth (Scazzieri, 2018). For the analysis of changes in the economy there are used different indexes (Vu, 2017), (Erumban, 2019(Erumban, ), https://doi.org/10.15405/epsbs.2020 Corresponding Author: D. G. Osipov Selection and peer-review under responsibility of the Organizing Committee of the conference eISSN: 2357-1330 50 (Smirnov, Semenov, Kadyshev, Zakharova, & Perfilova, 2019), regression models (Bayramov, Breban, & Mukhtarov, 2019), ordered logit regression (Cutrini, 2019), Bayesian local likelihood methodology (Kapetanios, Masolo, Petrova, & Waldron, 2019) and other approaches that reflect, as a rule, only the dynamics of changes in economy.…”